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- Metaplanet shares plunged 54% since June, straining its BTC “flywheel” model.
- Company eyes $880M public share offering and $3.7B preferred shares.
- Despite setbacks, Metaplanet targets 210,000 BTC holdings by 2027.
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Tokyo-listed Metaplanet, often dubbed Japan’s “MicroStrategy” for its aggressive Bitcoin (BTC) accumulation, is facing mounting investor pressure as its stock continues to tumble. Despite Bitcoin’s 2% uptick over the same period, Metaplanet’s shares have plummeted 54% since mid-June, jeopardizing its capital-raising strategy.
Metaplanet’s Bitcoin “Flywheel” Strategy Stalls
The company’s so-called “flywheel” strategy—leveraging rising share prices to issue warrants to key backer Evo Fund—has lost momentum as the stock decline makes warrant exercises less attractive. This has limited liquidity and slowed the pace of Metaplanet’s Bitcoin purchases.
As of press time, the stock was trading at 879 JPY, down 23.6% over the past month, according to Google Finance. Still, Metaplanet holds 18,991 BTC, ranking as the seventh-largest public corporate Bitcoin holder. The company has set ambitious targets of 100,000 BTC by 2026 and 210,000 BTC by 2027.
Alternative Fundraising: Public Offering and Preferred Shares
With the “flywheel” stalling, CEO Simon Gerovich is pursuing alternative capital-raising avenues. Metaplanet recently announced plans to raise about 130.3 billion yen ($880 million) via a public share offering in overseas markets.
In addition, shareholders will vote on September 1 on issuing up to 555 million preferred shares, potentially generating as much as 555 billion yen ($3.7 billion). These preferred shares, offering up to 6% annual dividends and capped at 25% of BTC holdings, aim to attract Japanese investors in a low-interest environment.
Gerovich described the shares as a “defensive mechanism” that provides flexibility without diluting common shareholders, stressing: “We don’t want to fall behind — people are racing to buy Bitcoin.”
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Analyst Caution and Market Sentiment
Despite these measures, analysts remain cautious. Metaplanet’s market value now stands at roughly double its Bitcoin holdings, down sharply from a “Bitcoin premium” of more than eight times in June.
Also Read: Metaplanet to Raise $1.2B for Bitcoin—Aiming for 210,000 BTC by 2027
Natixis analyst Eric Benoist warned that the premium is crucial to sustaining the model, while technical analyst Vincent suggested signs of a potential rebound on the weekly chart.
As Metaplanet prepares for its inclusion in the FTSE Japan Index, the company faces a pivotal test. Its ability to stabilize funding and maintain investor confidence will determine whether it can continue its ambitious Bitcoin accumulation strategy—or risk falling behind in the global race for BTC.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
